On Monday, the B.C. Supreme Court upheld the provincial government’s 18-month moratorium on new crypto-mining operations connecting to the power grid. Enacted in December 2022, the pause is meant to allow the province time to study the industry’s impact on B.C.’s economic and environmental goals.
The ruling comes after Conifex Timber Inc., a forestry company that recently branched into crypto mining, challenged the moratorium in court. Conifex claimed the policy has caused them ongoing losses and damages, but Justice Michael Tammen disagreed.
In his ruling, Justice Tammen stated that the moratorium was “reasonable,” not discriminatory, and aligned with B.C.’s Utilities Commission Act. He cited evidence from B.C. Hydro CEO Christopher O’Riley, estimated that Conifex’s proposed mining data centers would consume 2.5 million megawatt-hours of electricity per year – enough to power over 570,000 apartments.
The judge explained that meeting the substantial energy demands of cryptocurrency mining could leave less power available for B.C. residents and other industries. This could drive up electricity costs across the board. The province is already pushing households toward electric heating and vehicles. Several major industrial projects are also set to increase demand, ranging from hydrogen plants to mines.
The moratorium will temporarily halt any new mining operations while the province consults further with industry leaders. Cryptocurrency mining has faced scrutiny in several jurisdictions worldwide for its massive electricity consumption and meager local job creation.